Financial Results
Liechtenstein's LGT Group Logs 19 Per Cent Rise In Profit

LGT Group, the Liechtenstein-headquartered private bank, reported an increase in profit for the first six months of 19 per cent to SFr102.8 million ($112.3 million), up from SFr86.3 million in the first half of 2013.
LGT Group, the
Liechtenstein-headquartered private bank, reported an increase in
profit for the first six months of 19 per cent to SFr102.8
million ($112.3 million), up from SFr86.3 million in the first
half of 2013.
The firm said in its half-yearly statement that assets under
management rose by 5 per cent from SFr110.7 billion at the end of
2013 to SFr116.2 billion, while asset inflows totalled SFr2.3
billion.
In the first half of the year, total operating income increased 8
per cent to SFr475.5 million. Net interest income contributed
SFr42.9 million (+10 per cent), commission and service fee income
was SFr 326.1 million (+2 per cent), and trading and other income
SFr 106.5 million (+29 per cent).
The bank had a tier 1 capital ratio of 20.7 per cent, down from
21.3 per cent at the end of 2013.
The cost-income ratio fell by 6 percentage points to 71 per cent
compared to last year.
The bank said that the acquisition of private banking assets from
HSBC in Switzerland announced in June is proceeding according to
schedule and is expected to be concluded in the fourth quarter.
As a result of the deal, LGT expects its assets under management
to rise to over SFr125 billion.
LGT is optimistic in its outlook for the further development of
its business for the remainder of the year.
Depreciation, amortisation and provisions fell 27 per cent to
SFr20.5 million, primarily reflecting LGT Bank Switzerland’s
share of the upfront payment made by Swiss banks under the
withholding tax agreement with the UK in the first half of
2013.
“The acquisition of the attractive private banking portfolio from
HSBC in particular will help us to significantly raise our
profile in key markets. We will continue to make targeted growth
investments in the future and will seek to bring further good
teams onboard. Thanks to our solid capitalisation, our stable
ownership structure and our prudent, long-term strategy, we have
an excellent basis for achieving this,” said HSH Prince Max von
und zu Liechtenstein, chief executive of LGT Group.